Insurance and convictions

Statistics show that there are more than 9.2 million people in the UK with criminal convictions. A criminal conviction can be something more minor like a speeding fine, or more major like a prison sentence.

Convictions can have implications when taking out insurance, including commercial insurance.

Under the Rehabilitation of Offenders Act (ROA), ‘spent’ convictions are not required to be disclosed to insurers. ‘Unspent’ convictions, which remain on an individual’s record above and beyond the period set by the ROA, are more ambiguous, with many insurers refusing to offer insurance to those with unspent convictions.

Insurers often ask about convictions because they believe they are relevant to the risk and can decide whether to modify the price in-line with the conviction, or choose not to provide cover, if they believe the risks are too high.

Under insurance disclosure law, an applicant must answer questions an insurer asks fully and accurately, including disclosing any convictions if they are asked to.

If an individual fails to disclose an unspent conviction when making an application for cover or for a renewal, it can result in the policy becoming invalidated and the insurer may be able to avoid paying out for claims made by the policyholder.

Nelson Policies at Lloyd’s offers insurance for a wide variety of trades and occupancies in which the applicant may have criminal convictions and/or adverse financial history.

With our SME Package Business, our underwriters specialise in writing standard and non-standard policies, including providing cover for business owners with criminal convictions.

Some of the key trades our SME Package Business targets include beauty salons, retail shops, grocers and off-licenses, restaurants, cafes, takeaways and offices.

To find out more about Nelson Policies at Lloyd’s commercial policies that caters for applicants with criminal convictions, get in touch with our specialist underwriters today.

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